HomeMy WebLinkAbout1988-183-11/15/1988-PROGRAM REVISING SELF INSURANCE RESOLUTION 88- 183
OF THE COUNCIL OF THE CITY OF FORT COLLINS
REVISING THE SELF-INSURANCE PROGRAM
WHEREAS, by Resolution 87-79, the Council of the City of Fort Collins
has assumed legal liability, to the extent authorized by law, for payment
of certain defense costs, judgments and settlements of claims which are the
subject of pending civil actions filed against its present or former public
employees; and
WHEREAS, on January 5, 1988, Council adopted Resolution 88-1
establishing a self-insurance program (the "Program") and a self-insurance
fund to provide for (1) the settlement and payment of civil claims against
the City and/or its employees which are not the subject of pending
litigation, and (2) the replacement or repair of damaged or stolen City
property; and
WHEREAS, the Council desires to revise the self-insurance program to
provide for the settlement and payment of workers' compensation claims of
the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Resolution 88-1 be, and the same hereby is, revised to read as
follows:
Section 1. Creation and Purpose of Self-Insurance Program.
a. There is hereby authorized and created a self-insurance program
(the "Program") for the City of Fort Collins.
b. The purpose of the Program is to provide a uniform and centralized
self-insurance system that will provide coverage and payment,
within the monetary limits established in Section 2 below, for the
following "covered expenses" :
(1) Costs, fees, judgments and claims paid in connection with
those certain civil actions filed against employees of the
City in state or federal court, which actions are more
particularly described in Resolution 87-79, dated June 2,
1987.
(2) Costs, damages and/or expenses incurred in the payment of
other civil claims filed against the City and/or its employees
(as defined in Section 24-10-103(4) , C.R.S. ] , whether or not
such claims are the subject of formal court proceedings;
provided, however, that such claims are, in the judgment of
the Director of Purchasing and Risk Management ( the
"Director") , meritorious claim for which the City may be
legally liable.
(3) Costs and expenses incurred by the City for the repair or
replacement of City property, real or personal , which costs
are sustained by reason of the theft of or damage to said
property, excluding normal wear and tear.
(4) Indemnity, medical and other costs associated with workers'
compensation claims.
(5) Insurance premiums.
(6) Such costs of administering the Program as are deemed
reasonable and necessary by the Director.
c. For the purposes of this Resolution and Resolution 87-79, any
member of a board or commission appointed by the City and subject
to removal by the City shall be considered an "authorized
volunteer" and "public employee" within the meaning of Section
24-10-103(4) C.R.S. , whether or not such board or commission is
itself under the control of the City.
d. The establishment of the Program shall not be construed so as to
expand in any way the City's legal liability to third party
claimants , whether under the provisions of the Colorado
Governmental Immunity Act, Section 24-10-101, et seq. , C.R.S. , or
otherwise.
Section 2. Funding of the Program. The Program shall be funded by
monies appropriated for expenditure from a Self-Insurance Fund (the
"Fund") , which is hereby created.
a. Expenditures from the Fund for covered expenses of liability
claims shall not exceed: (1) One Hundred Fifty Thousand Dollars
($150,000) to any one person for claims arising out of a single
incident or occurrence; or (2) Four Hundred Thousand Dollars
($400,000) in total payment to all persons for claims arising out
of a single incident or occurrence.
b. Expenditures from the Fund for covered expenses of workers'
compensation claims shall not exceed Three Hundred Thousand
Dollars ($300,000) in total payment to all persons for claims
arising out of a single incident or occurrence.
c. Notwithstanding the foregoing, funds authorized for expenditure by
the Director shall in no event exceed the uninsured portion of any
covered expense.
d. The limits contained herein are intended only to limit amounts to
be expended from the Fund and are not intended to preclude
supplemental appropriations, if necessary, to fully satisfy the
City's assumption of liability on behalf of employees as described
in Resolution 87-79, referred to above.
Section 3. Implementation and Administration.
a. The Director shall be responsible for implementation and
administration of the Program, including the settlement of claims.
The Director is authorized to promulgate rules for the proper
daily management, operation and maintenance of the program, and is
further authorized to enter into a professional services agreement
pursuant to relevant provisions of City Code for the
administration of claims.
b. The Director shall authorize expenditures for the purposes
described in Section 1 above and shall maintain such accounting
records pertaining to each such transaction as may be deemed
necessary by the Financial Officer. Covered expenses shall be
paid on an occurrence basis.
c. The costs of covered expenses paid out of the Fund shall be
allocated among the various departments of the City, and the
departments charged therefor, according to the Director's
assessment of each department's exposure. Factors to be
considered by the Director shall include each department's
payroll , revenue, value of property utilized, previous loss
history, expected losses, and reserves for workers' compensation
claims that may be required by the Department of Labor and
Employment.
Section 4. Enforceability. The provisions of this Resolution shall
constitute a separate agreement between the City and each covered employee
of the City, as defined in Section 1(b) (2) above, so that each such
employee shall be entitled to enforce said provisions to the extent
permitted by law.
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins held this 15th day of November, A.D. 1988.
Mayor
TTEST:
City Clerk